The Virtual Assets Regulatory Authority VARA of Dubai has issued a new version of its activity-based Rulebooks and allowed licensed digital asset companies until June 19, 2025, to meet all the requirements. The regulator is doing this to ensure proper management, uniformity in language, and improved risk control among virtual assets in the UAE.
Introduced on May 19, Version 2.0 of the Rulebooks includes new rules for various activities in the virtual asset market. The changes covered reinforcing rules on margin trading, distributing tokens, organizing collateral, and ensuring a similar approach to compliant operations for every licensed business.
Based on the updated VARA, there will now be more consistent meanings for “client assets,” qualified custodians, and collateral requirements. Ensuring accuracy and helping organizations comply with various regulations is the main aim of this change.
Advisory services, functions as a broker, custody and safekeeping, operating an exchange, lending and borrowing, managing virtual assets, transfer, and settlement are the main services offered.
As per the reports, a VARA representative said that effectively regulating all businesses helps standardize rules and enables VASPs to manage different sets of rules governing brokerage, holding assets, and exchanging.
The authority has focused on margin trading, introducing tougher procedures for setting leverage, demanding more collateral, and monitoring VASPs offering this service. These measures are put in place to reduce the risks caused by high borrowing when the market is erratic.
Another notable addition is a section on managing token distribution, explaining licensing needs, investment protections, and guidelines for marketing merchants and advertisements meant for people who invest in retail tokens.
The goal is to ensure Swiss financial services meet the standards and rules of other nations and to address noticeable gaps in regulations, the spokesperson said.
VARA promises to collaborate with those who have licenses during the 30-day transition phase. The regulator clarified that the changes will help support responsible development and protect the integrity of the markets, as well as investors.
By undergoing the update, Dubai is advancing its aim to become a main hub for controlled digital assets, giving investors certainty about the rules and equity between innovation and safety.
